China reveals exports, imports fall in January

BEIJING -- China's trade activity fell in January from a year earlier, data showed Friday, as a domestic slowdown, overseas turmoil and factory closures during the Lunar New Year holiday hit demand.

Exports fell 0.5 percent year-on-year in January to US$149.94 billion while imports plunged 15.3 percent to US$122.66 billion, customs said in a statement, marking the worst trade data since 2009 during the global financial crisis.

China's politically sensitive trade surplus â€” a constant bugbear for its major trade partners â€” widened to US$27.28 billion in January from US$16.52 billion in the previous month, the statement said.

Analysts have cautioned that the January data had been distorted by the earlier-than-usual Chinese Lunar New Year holiday, also known as the Spring Festival, which fell in January this year.

Many of China's factories and businesses cut back production or close their doors during the holiday so employees can travel home to celebrate the most important festival in the Chinese calendar with their families.

Even so, analysts said the latest trade figures added to mounting evidence that the world's second-largest economy was slowing as the eurozone crisis and weakness in the United States hurt demand for Chinese products.

Seasonally adjusted figures show exports and imports rose 10.3 percent and 1.5 percent year on year, respectively, which still marks a sharp slowdown from December when exports rose 13.4 percent and imports were up 11.8 percent.

Chinese shares were down 0.21 percent, or 4.99 points, at 2,344.60 in early afternoon trade.

Bank of America-Merrill Lynch economist Lu Ting said the European sovereign debt crisis posed the biggest threat to the Chinese economy this year and would be a â€œmajor dragâ€ on growth as consumers cut back on spending.

The International Monetary Fund (IMF) this week warned that an escalation of Europe's fiscal woes could slash China's economic growth by half this year, and it urged Beijing to prepare stimulus measures in response.

In the IMF's â€œdownside scenario,â€ China's growth would fall by around 4.0 percentage points this year from the 8.2 percent rate it projected in January.

But Chinese leaders have been cautious about opening the credit valves for fear of reigniting inflation, which has the historic potential to trigger social unrest in the country of more than 1.3 billion people.

Late last year the central bank eased lending restrictions on banks and analysts expect similar moves this year as authorities try to spur economic activity and prevent a collapse in the property market.

Policymakers are also easing taxes and improving funding channels for small and medium-sized businesses which are huge employers but are often shunned by the major banks.

Chinese Commerce Minister Chen Deming said Thursday that smaller businesses were â€œunder growing pressureâ€ and the government planned to adopt a number of measures to help them overcome their current difficulties.

â€œShould there be any fine-tuning, it will be supportive rather than discouraging,â€ Chen said, echoing comments made by Premier Wen Jiabao at the weekend.

BEIJING -- China's trade activity fell in January from a year earlier, data showed Friday, as a domestic slowdown, overseas turmoil and factory closures during the Lunar New Year holiday hit demand.

Exports fell 0.5 percent year-on-year in January to US$149.94 billion while imports plunged 15.3 percent to US$122.66 billion, customs said in a statement, marking the worst trade data since 2009 during the global financial crisis.

China's politically sensitive trade surplus â€” a constant bugbear for its major trade partners â€” widened to US$27.28 billion in January from US$16.52 billion in the previous month, the statement said.

Analysts have cautioned that the January data had been distorted by the earlier-than-usual Chinese Lunar New Year holiday, also known as the Spring Festival, which fell in January this year.

Many of China's factories and businesses cut back production or close their doors during the holiday so employees can travel home to celebrate the most important festival in the Chinese calendar with their families.

Even so, analysts said the latest trade figures added to mounting evidence that the world's second-largest economy was slowing as the eurozone crisis and weakness in the United States hurt demand for Chinese products.

Seasonally adjusted figures show exports and imports rose 10.3 percent and 1.5 percent year on year, respectively, which still marks a sharp slowdown from December when exports rose 13.4 percent and imports were up 11.8 percent.

Chinese shares were down 0.21 percent, or 4.99 points, at 2,344.60 in early afternoon trade.

Bank of America-Merrill Lynch economist Lu Ting said the European sovereign debt crisis posed the biggest threat to the Chinese economy this year and would be a â€œmajor dragâ€ on growth as consumers cut back on spending.

The International Monetary Fund (IMF) this week warned that an escalation of Europe's fiscal woes could slash China's economic growth by half this year, and it urged Beijing to prepare stimulus measures in response.

In the IMF's â€œdownside scenario,â€ China's growth would fall by around 4.0 percentage points this year from the 8.2 percent rate it projected in January.

But Chinese leaders have been cautious about opening the credit valves for fear of reigniting inflation, which has the historic potential to trigger social unrest in the country of more than 1.3 billion people.

Late last year the central bank eased lending restrictions on banks and analysts expect similar moves this year as authorities try to spur economic activity and prevent a collapse in the property market.

Policymakers are also easing taxes and improving funding channels for small and medium-sized businesses which are huge employers but are often shunned by the major banks.

Chinese Commerce Minister Chen Deming said Thursday that smaller businesses were â€œunder growing pressureâ€ and the government planned to adopt a number of measures to help them overcome their current difficulties.

â€œShould there be any fine-tuning, it will be supportive rather than discouraging,â€ Chen said, echoing comments made by Premier Wen Jiabao at the weekend.

"Just stop pretending you understand china and post those lengthy and misled articles.
We have a lot of game, just count how many gold medals China has in Olympic. What is the name of your game? I have never heard one. "